The Next Global Chemicals Leader? Meet Borouge Group International

In a major industry-shaking announcement today, ADNOC and Austria’s OMV revealed their plans to merge their shareholdings in Borouge plc and Borealis AG, creating Borouge Group International. This new global chemicals powerhouse is set to acquire North America’s NOVA Chemicals Corporation in a deal valued at AED49.2 billion.

So, what does this mean?

Borouge Group International is set to become a behemoth in the global chemicals sector, with an estimated enterprise value of over AED220 billion. This will position the company as the world’s fourth-largest producer of polyolefins – essential plastic materials used in everything from packaging to automotive parts. With headquarters in both Abu Dhabi and Vienna, Borouge Group International will be jointly owned and controlled by ADNOC and OMV, strengthening the already deep-rooted partnership between the two giants.

But there’s more to this story.

One of the most interesting aspects of this merger is OMV’s cash injection of €1.6 billion (AED6.1 billion) into the new company, ensuring an equal ownership split between the two. This capital boost also demonstrates OMV’s long-term commitment to the venture, which is expected to deliver AED1.8 billion in annual synergies. As a cherry on top, Borouge plc shareholders will also benefit from dividend growth as they become part owners of this newly merged entity, which will be listed on the Abu Dhabi Securities Exchange (ADX).

Now, what does Borouge Group International bring to the table? By combining Borouge, Borealis, and NOVA Chemicals, the new company will have unmatched capabilities and access to growth markets worldwide. With a vast portfolio of premium products and cutting-edge technologies, it will play a crucial role in meeting the rising global demand for chemicals, particularly in recyclable products. Its complementary product lines are expected to cover everything from Borouge’s innovative agricultural products to Borealis’ textiles and Nova’s sustainable packaging solutions.

And that’s not all.

The Borouge 4 expansion project, which will be transferred to the new company in 2026, is expected to cost approximately AED27.5 billion. When completed, Borouge 4 will push Borouge Group International's production capacity to a staggering 13.6 million tonnes per annum, solidifying its position as a global polyolefin leader.

Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, referred to this move as a “pivotal milestone” in ADNOC’s global chemicals strategy. He highlighted that this visionary merger builds on ADNOC and OMV’s 25-year partnership, further securing Abu Dhabi’s leadership in the chemicals sector. This also aligns with ADNOC’s overarching international growth mandate, which has been driving value creation and opportunities for shareholders.

So, what’s next?

Once the deal is finalised, ADNOC will transfer its stake in Borouge Group International to XRG, ADNOC’s international energy investment arm. Launched in 2024, XRG has an enterprise value of over US$80 billion and focuses on growth across the energy spectrum, from chemicals to low-carbon fuels and energy infrastructure.

In short, this strategic merger is set to reshape the global chemicals landscape and create a company poised for significant growth across Europe, the Middle East, and North America. ADNOC and OMV’s combined expertise, alongside their longstanding partnership, will make Borouge Group International a key player to watch in the coming years.